Oil prices climb amid demand hopes

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A worker pours liquid oil into a barrel at the delayed coker unit of the Duna oil refinery operated by MOL Hungarian Oil and Gas Plc in Szazhalombatta, Hungary, on Tuesday, July 9, 2013. Hungary refiner Mol may take part in oil exploration in Montenegro after country calls tender in July, daily Magyar Hirlap says. Photographer: Akos Stiller/Bloomberg via Getty Images

Oil prices gained on Tuesday as market sentiment was lifted after the European Union reached a deal on a massive coronavirus aid package.

The West Texas Intermediate (WTI) for August delivery increased 1.15 U.S. dollars to settle at 41.96 dollars a barrel on the New York Mercantile Exchange on its expiration day. September WTI crude, the more active new front-month contract, was up 1 dollar to settle at 41.92 dollars a barrel.

Meanwhile, Brent crude for September delivery advanced 1.04 dollars to close at 44.32 dollars a barrel on the London ICE Futures Exchange.

Following intense marathon negotiations, leaders of the 27 EU member states on Tuesday reached a consensus on the 750-billion-euro coronavirus crisis recovery fund and the bloc’s long-term budget worth over 1 trillion euros.
The move helped ease concerns about energy demand, experts noted.

In their latest monthly reports, the International Energy Agency and the Organization of the Petroleum Exporting Countries revised up their forecasts for world crude demand in 2020 as global lockdown eases while warning lingering uncertainty from the pandemic.

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